Morrisey Brown Ltd of Sydney is a merchandising company tha

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company\'s income statements for the three most recent months follow: Morrisey &Brown;, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units Sales Cost of goods sold GrOSs marcin Selling and administrative expenses: 4,750 546,250 327,750 218,500 5,250 $603,750 362,250 241,500 5,750 $661,250 396,750 264,500 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 31,800 35,500 81,000 6,550 18,000 172,850 45,650 31,800 38,100 87,300 6,550 18,000 181,750 $59,750 31,800 40,700 93,600 6,550 18,000 190,650 $ 73,850 Total selling and administrative expenses Net operating income

Solution

Working Note - 1
Analysis of Expenses

Working Note - 2
Calcuation of fixed exp and Variable expenses in Mixed Exp

[Variable Cost Per Unit = Change in Cost/Change in Units
Variable Cost = Variable cost per unit x No of Unit
Fixed Cost = Mixed cost - Variable cost]

Cost of goods Sold	Variable
Advertising Exp	Fixed
Shipping Exp	Mixed (Semi-Variable)
Salaries & Commision	Mixed (Semi-Variable)
Insuarance Exp	Fixed
Depreciation Exp	Fixed